Archive for April 4th, 2010
4
Over The Counter Bulletin Board: How To Raise Capital Fast And Easy
No comments · Posted by James Scott in Internet Business
If you own or run a company that is trying to raise capital in the current economic conditions you’ve undoubtedly been challenged by the limited funds available. Investors are more difficult to find and the individuals that are actually willing to part with their cash are even tougher to find. You’ve talked to friends, family members, your cpa and your attorney but trying to get them to invest is like drawing blood from a stone, it’s just not happening.
There is an easier way. Most broker dealers and market makers have an emergency number in their rolodex that reads “Investor Finder”, these specialist consultants are brought in when there is nowhere else to turn for cash. A true Investor Finder has 1,000′s of investor contacts that they can call on to get funding for their clients and are constantly using online viral strategies to attract more investors to their database.
An investor finder usually is not a licensed securities broker/agent or attorney; instead they are traditionally consultants that are active in the investment banking facilitation aspect of the industry. Being that they are not licensed they do not accept equity payments or percentages; instead they work on a flat fee basis.
A good consultant in this genre can bring in 30 to 70 real investors per day and it’s up to the client to sell the opportunity from there. A typical lead from an investor finder will be an investor or investment firm that is responding to the consultant’s opportunity introduction email or snail mail mailing, they have read about the opportunity and they respond one of two ways, either they are calling into a phone room to be screened and qualified or they are contacting the client directly.
Many times the investor doesn’t know that they are part of the “finder’s” database but do recall signing up to receive investment opportunity updates, so either way the investor is solid and active. If you are trying to raise capital and need real results quickly and can’t afford to waste time begging for cash, you need to seek out a qualified Investor Finder consultant and make your fundraising efforts fast and easy.
Investor Finder Services, call Princeton Corporate Solutions at 267-233-0183Take Your Company Public the easy way!
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Many people just like you are starting to see why eBay is a great opportunity to make extra money. Some people might be selling on eBay to make a few extra dollars each month. Other sellers might have a specific goal to cover utilities or other household expenses. Others might want to buy a car. Others still are learning how to sell on eBay to cover all of their bills and living expenses. Does that sound impossible? Well thousands of people are doing it right now.
Before you start selling on eBay, you need to have some sort of goal. By having a goal, you will have the direction you need in order to make the best use of your time on eBay. Often people set a “goal” of “making extra money.” This isn’t really a goal however, because it isn’t specific enough. How much money are you thinking about making? When you know how much money you want to have you can begin to create a plan to get you there. A good business person always has a plan of action. Without a plan of action you are you are not going to reach your goal.
Aside from your plan, you will also need some important tools. Obviously, you’ll need a computer, but you’ll also need a printer, a digital camera, items to sell, a PayPal account, an eBay sellers account, a postal scale, and packaging materials. Most of these you could probably think of, but many new eBay sellers forget the importance of a postal scale
When you’re just getting started on eBay, you’ll learn that buyers do not like paying more for shipping than it actually costs. It’s also against eBay policy to charge excessive shipping and handling.
Once your item is completely packaged, you can place it on the postal scale and see what the exact weight is. Knowing the weight will allow you to determine the exact cost to mail the item. Just refer to the post office for the shipping rates. Also, make sure you are taking additional shipping fees into consideration. For example, delivery confirmation, and insurance.
Some eBay sellers will cover the shipping costs out of their pocket for high-ticket items as a sort of “bonus” for the buyer. This is considered to be good customer service. However, whether you or the buyer pays for insurance coverage, make sure you have it for high-priced items. You can never be too safe.
Jesse Holmes is an eBay PowerSeller and Entrepreneur who has been making money on eBay for more than 3 years. Before you start selling on eBay, make sure you check out his excellent free eBay Business Start Up Kit, showing you step by step how to learn to sell on eBay.
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4
Over The Counter Bulletin Board? Beware of the Hard Sell Consultants
No comments · Posted by James Scott in Internet Business
Private Placement Memorandum authoring and the process of taking one’s company public are services that require extensive experience and the ability to look at a deal objectively and peripherally to evaluate all the angles to enhance the ability of the client to achieve funding in a timely manner.
Many times, when I’m hired to structure a company before funding, they will be under the impression that my evaluation is a mere formality and they are ready to go. Often I’m the bearer of bad news when I have to break it to the client that their company has more holes than Swiss cheese and 30 to 60 days away from starting the fund raising process.
They will often get a second and then third opinion and usually run into the same thing before they eventually find their way back to our firm. As they call around to consulting firms they perpetually experience the ‘hard sell’ by firms who ‘need’ the business because they lack the rewards and referrals that come with cultivating each client relationship because they take on and spit out deals so fast they hardly remember their client’s name during the transaction.
This mentality dominates the larger firms because of their gargantuan overhead while the boutique firms can take a more personal approach because they have a steady flow of business and referrals because they are not stressed about bringing in the next big deal so they can meet payroll and keep their lights on. The smaller companies that focus on turnaround consulting, private placement memorandum authoring, top tier business plan writing and taking companies public usually take a one on one approach to the consulting process and will rarely pressure clients to sign on because their phone is ringing off the hook with previous clients who want to hire them for the next stage in the evolution of their company’s growth.
This business is all about relationships. Ditch the consultant that applies the high pressure sales tactics and seek out the smaller, more personalized groups that don’t ‘need’ your business but will cultivate and value it.
Investor Finder Services, call Princeton Corporate Solutions at 267-233-0183Take Your Company Public the easy way!
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The IRS targets sole proprietors—any unincorporated business where income is reported by only one person.
You are classified as a sole proprietor if you do not file any legal paperwork to become an LLC or a corporation.
IRS form Schedule C is used by sole proprietors to deduct business expenses against business income. The two biggest problems for the IRS are fears that income will be under reported and personal expenses will be written off as business deductions.
Many fraudulent businesses have been discovered by the IRS, since business losses can be used to reduce tax liability, enabling the taxpayer to claim the earned income credit, i.e. free money.
That’s why schedule C is the IRS’ most audited form. Simply having a schedule C in your return results in more scrutiny by the IRS.
Isn’t that reason enough to stay away from schedule C?
The IRS targets services businesses–hair stylists,home services and repair persons in addition to professional careers like doctors, lawyers, computer networking people and insurance agents.
Professionals and people in service businesses should change the way they report their business income and expenses.
In other words, AVOID SCHEDULE C!
Forming an LLC or incorporating your business are both great alternatives.
An S-corporation is an excellent alternative to the taboo schedule C. There are many benefits to forming an S-Corp, mainly the fact that S-Corporations don’t pay self employment tax—the additional 15.3% tax due on the profit from a sole proprietorship or partnership.
Forming an LLC would only be effective in escaping schedule C if you have additional members (partners) in the business since a single member LLC must file a schedule C. You could also elect to file as an S-corporation or partnership by filing IRS form 8832 (Entity Classification Election) and be reclassified.
Consulting a tax professional before making this decision about your entity is a wise course of action. Since each person’s situation is different, many factors need to be considered in making the decision.
Learn more about Sole Proprietors. Stop by Larisa Humphrey’s site where you can find out all about small business taxes and how to save big money.
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